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Board adopts reserve‑policy amendment and one‑time transfer to seed water fund debt‑service reserve
Summary
The board amended the enterprise funds reserves policy to add a debt‑service reserve category and unanimously adopted Resolution No. 24‑32 authorizing a one‑time transfer from the general fund to the water fund to start that reserve, a step staff said is required under SRF loan terms.
The board considered an amendment to the enterprise funds unrestricted net position and reserves policy to establish a formal debt‑service reserve category and to authorize a one‑time transfer of general‑fund cash into the water fund to begin funding that reserve.
Chair introduced the item and noted the change responds to SRF loan requirements. Staff described the intent to seed the reserve over two years while finalizing debt service requirements and loan final draws. The resolution before the board was identified in the agenda as Resolution No. 24‑32 authorizing the onetime transfer and clarifying that the board retains discretion over future reclassification of the funds at the end of the loan term. After public comment (none), the board moved the item, took a roll‑call vote, and adopted Resolution No. 24‑32 unanimously.
Why it matters: SRF (State Revolving Fund) loan terms can require a debt‑service reserve to be held for the life of the financing; the district added the category into its reserves policy and executed an initial transfer to meet that requirement. Staff said a larger follow‑up transfer is likely next year after the loan is finalized and the debt‑service schedule is known.
